Financial Year 2026 is Here: Tax Planning Should be First on Your To-Do List

April marks the beginning of the financial year in India, making it the perfect time to plan your taxes for FY26 (April 1, 2025 – March 31, 2026). Tax planning involves legally reducing your tax liability by using deductions, exemptions, and investment tools offered under the Income Tax Act. We discuss a few pointers that will help you plan your finances and taxes well.

Choosing Between the Old and New Tax Regimes

India offers two tax regimes:

Old Regime

Allows you to claim deductions like:

• Section 80C (₹1.5 lakh for PPF, ELSS, LIC, etc.)

• Section 80D (health insurance premiums)

• HRA, LTA and other exemptions

New Regime

Offers lower tax rates with no deductions:

Compare your tax under both regimes before choosing.

Explore Top Tax-Saving Investments

There are several investments that are eligible for tax deductions and exemptions under various sections of the Income Tax Act. A few of them are:

• Section 80C (Limit: ₹1.5 lakh)

• PPF – 15-year lock-in, tax-free interest

• EPF – Mandatory for salaried employees

• Life Insurance – For self, spouse, children

• ELSS – 3-year lock-in mutual funds

• NSC – 5-year government-backed option

Section 80D (Health Insurance)

• ₹25,000 for self + ₹25,000 for parents <60

• ₹50,000 for parents >60

• Total possible deduction: ₹1 lakh

Read more: Tax saving options.

Claim Standard Deduction and Rebate

• Standard Deduction: ₹50,000 for all salaried and pensioned individuals

• Section 87A Rebate: If income is ≤ ₹7 lakh under new regime, tax payable = ₹0

Important FY26 Tax Tips to Remember

1. Start tax planning early in April 2025 to avoid rushed investments in March 2026

2. Choose investments that match your financial goals like

3. Learn from last year’s mistakes

4. Consider professional help if unsure

5. Always file your ITR, even if tax is zero

Key Tax Deadlines for FY26

• 31 July 2025: File ITR (Income Tax Return) for FY26 without penalty

• 15 March 2026: Deadline for most tax-saving investments

• 31 March 2026: End of the financial year FY26

Conclusion

Tax planning is not just about saving taxes—it’s about making smarter financial decisions early. By starting in April, you gain control over your money, reduce your tax outgo, and invest with purpose. No matter your income level, smart planning in FY26 can go a long way in building wealth and peace of mind.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.